article thumbnail

5 Equity Distribution Parameters For Key Contributors

Startup Professionals Musings

So, the first question I usually get is what percent of the company or equity is that person worth? The next default of waiting until later is equally bad, since partners who bow out early will still expect an equal share of that first billion you make later. Just because it was your idea doesn’t mean you “deserve” 90% of the equity.

article thumbnail

4 Keys To A Successful Integrity Check With Investors

Startup Professionals Musings

That might start with the CEO giving the investor pitch to the whole organization, and distributing the current business plan document to everyone. Visit reference customers, partners, and vendors. Startup equity investments imply a long-term business relationship, lasting an average of five years. Traction in the marketplace.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How To Prepare Your New Venture For Investor Scrutiny

Startup Professionals Musings

That might start with the CEO giving the investor pitch to the whole organization, and distributing the current business plan document to everyone. Visit reference customers, partners, and vendors. Startup equity investments imply a long-term business relationship, lasting an average of five years. Traction in the marketplace.

article thumbnail

Dan Lok Explains Venture Capital Funding and How to Secure It

The Startup Magazine

Venture capital is a type of private equity. The downside to venture capital is that the company or individual doing investing generally get equity in the company. One difference between venture capital and private equity deals, in general, is that venture capital focuses on emerging companies. What is Venture Capital Funding?

article thumbnail

This Week in VC with Dana Settle of Greycroft Partners

Both Sides of the Table

Our guest this week on #TWiVC was Dana Settle , partner at Greycroft Partners , a venture capital firm with offices in New York and Los Angeles. Current round: $35mm in Series C (extension of Series B at higher valuation) from General Atlantic, Matrix Partners. Read more: TechCrunch , Reg Form D , WSJ interview w/ Susan Lyne.

Partner 240
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. Of the Inc. Example VC.

article thumbnail

Free Startup CTO Consulting Sessions

SoCal CTO

Who might be partners? Send your overview to me (Tony Karrer): akarrer@techempower.com Based on the type of business, we will distribute it to someone who is most appropriate. I'm looking for free (equity only) development, should I contact you? See Equity-Only CTO and Equity-Only Developers for more on this.